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THE ALLSTATE CORPORATION REPORTS INITIAL EARNINGS AS A PUBLICLY TRADED COMPANY

 NORTHBROOK, Ill., July 20 /PRNewswire/ -- In its first earnings report as a publicly traded company, The Allstate Corporation (NYSE: ALL) today announced second quarter consolidated net income of $396.7 million, a 72.8 percent increase over the $229.6 million reported for the same period last year. Pro forma earnings per share for the second quarter were $0.94 compared to a pro forma earnings per share of $0.53 for the second quarter in 1992, a 77.4 percent increase. Revenues for the quarter grew 4.2 percent to $5.23 billion from $5.02 billion for the second quarter in 1992.
 Allstate's Chairman and Chief Executive Officer Wayne Hedien said, "Our strong performance in the first three months has continued through the second quarter of the year, with contributions from both property- liability and life operations."
 Consolidated net income for the first six months was $716.8 million, a 47.8 percent increase over last year's income of $485.1 million, before the cumulative effect of accounting changes. Net income for the first six months in 1992 was $159.5 million after accounting changes of $325.6 million. Pro forma earnings per share for the six-month period increased 51.8 percent to $1.70 compared to a pro forma earnings per share of $1.12 in 1992 before the cumulative effect of accounting changes.
 Revenues for the first half were $10.35 billion compared to $10.02 billion for the same period in 1992, an increase of 3.3 percent.
 Income from property-liability operations for the second quarter increased 86.5 percent to $366.5 million from $196.5 million for the same period in 1992. Underwriting losses were $1.7 million, improving from a loss of $253.8 million for the comparable 1992 period. The significant improvement in underwriting results is largely due to lower catastrophe losses and to favorable trends in claim severity (average cost per claim). Catastrophe losses for the second quarter were $118.6 million compared to $275.4 million for the same period in 1992.
 Investment income from property-liability operations for the second quarter decreased 4.2 percent to $360.0 million from $375.8 million for the same period in 1992, primarily due to declining interest rates. Realized capital gains after tax were $41.6 million for the second quarter compared to $13.0 million for the same period in 1992, due to favorable market conditions.
 Revenues from property-liability operations for the second quarter grew 4.3 percent to $4.51 billion from $4.32 billion for the same period in 1992. Premiums earned increased to $4.08 billion for the quarter from $3.92 billion for the same period in 1992. Premiums earned grew 6.0 percent after giving effect to the company's exit from the national accounts market (certain national commercial coverages) in 1992.
 Income from property-liability operations for the first six months was $630.0 million compared to $427.9 million for the same period in 1992 before accounting changes, an increase of 47.2 percent. Underwriting results for the first half improved to a loss of $161.0 million from a loss of $471.8 million for the comparable 1992 period. This improvement in underwriting results is attributable primarily to favorable trends in claim severity, lower catastrophe losses and a reduction in the expense ratio. Catastrophe losses for the first half of 1993, including the storm that hit the east coast in March, were $343.2 million compared to $397.8 million for the same period in 1992.
 Investment income from property-liability operations for the first six months decreased 4.2 percent to $708.0 million from $738.7 million for the same period in 1992. The decrease resulted from declining interest rates and lower funds available for investment due to catastrophe claim payments principally from Hurricane Andrew. Realized capital gains after tax were $88.8 million in 1993 compared to $46.5 million in 1992. The increase is attributable primarily to the sale of investments to take advantage of favorable market conditions during the period.
 Revenues from property-liability operations for the first half grew 3.2 percent to $8.90 billion from $8.62 billion for the same period in 1992. Premiums earned increased to $8.06 billion for the first six months from $7.81 billion for the same period of 1992. Premiums earned grew 5.0 percent after giving effect to the company's exit from the national accounts market in 1992.
 Income from life operations for the second quarter increased by 53.2 percent to $50.7 million from $33.1 million in 1992.
 The improvement is primarily the result of lower commercial mortgage loan losses. Revenues increased 3.0 percent to $722.6 million from $701.7 million for the same period in 1992.
 Income from life operations increased by 97.6 percent to $113.0 million for the first six months, from $57.2 million for the same period in 1992 before accounting changes. The improvement is primarily the result of stronger operating income, increased capital gains from sales of investments and lower commercial mortgage loan losses. Revenues for the six months increased 3.4 percent to $1.44 billion from $1.40 billion for the comparable period in 1992.
 Allstate Insurance Company, The Allstate Corporation's operating company, established in 1931 by Sears, Roebuck and Co., is the country's second largest property-liability insurer and one of the 20 largest life insurers based on 1992 statutory premiums and deposits.
 -0- 7/20/93
 /CONTACT: Kathleen Hogan of Allstate, 708-402-5600/
 (ALL)


CO: The Allstate Corporation ST: Illinois IN: INS SU: ERN

CK -- NY024 -- 6678 07/20/93 10:18 EDT
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Date:Jul 20, 1993
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